Those following along with China Risun Group Limited (HKG:1907) will no doubt be intrigued by the recent purchase of shares by Xuegang Yang, CEO & Chairman of the company, who spent a stonking HK$156m on stock at an average price of HK$3.00. While that only increased their holding size by 1.6%, it is still a big swing by our standards.
View our latest analysis for China Risun Group
China Risun Group Insider Transactions Over The Last Year
Notably, that recent purchase by Xuegang Yang is the biggest insider purchase of China Risun Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of HK$2.82. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Xuegang Yang was the only individual insider to buy during the last year.
Xuegang Yang purchased 58.94m shares over the year. The average price per share was HK$3.00. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
China Risun Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that China Risun Group insiders own 74% of the company, worth about HK$9.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The China Risun Group Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about China Risun Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing China Risun Group. At Simply Wall St, we've found that China Risun Group has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course China Risun Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.